Note to VIII, 231—Continued at 13,500,000 gold crowns from January 1, 1944 to 1966 inclusive, aggregating 475,500,000 gold crowns (see table p. 412). The trust agreement between the Bank for International Settlements and the creditors came into force on May 6, 1931, and the instalments due through June 30, 1931 were paid. The London protocol of January 21, 1932 (United Kingdom, Hungary No. 1 (1932), Cmd. 4052) suspended the payments under the Hoover moratorium, and part III of the Lausanne agreement of July 7, 1932 operated to reserve the execution of payments until December 15, 1932 and afterward. Agreements II and III dealt with the establishment and use of the Agrarian Fund "A", which met a special situation. Article 250 of the treaty of peace with Hungary provided that "the property, rights and interests of Hungarian nationals or companies controlled by them situated in the territories which formed part of the former Austro-Hungarian Monarchy", shall be restored to their owners with some exceptions, freed from any measure "of retention or liquidation" or "of transfer, compulsory administration or sequestration". The system of Magyar estates which the succession states of Czechoslovakia, Rumania, and Yugoslavia found on their newly acquired territory was subjected to breaking up in accordance with salutary policies of agrarian reform, which, however, were quite divergent in character in the three states. Between Hungarian present and former owners and the three states very complicated relations resulted. In Agreement II all claims of this kind by Hungarian nationals pending before the Mixed Arbitral Tribunals were to be pursued against Agrarian Fund "A" instead of against Czechoslovakia, Rumania, or Yugoslavia. The agreement provided in detail for the handling of claims and set time-limits upon filing them. The Mixed Arbitral Tribunals, as organized for the purpose, were not to interpret article 250, on which the four states nearly concerned reserved their legal positions. Agreement III concerned the organization and working of Fund "A", the capital of which was fixed at 219,500,000 gold crowns (.304878 grams of fine gold). Annual contributions to the fund in the early period (1931-44) were for Rumania, 500,000 gold crowns and for Yugoslavia, 1,000,000 gold crowns. Czechoslovak agrarian reform was well advanced, and its contributions were to be at the rate of 226 gold crowns per cadastral jugar of the land for which indemnity was due, of which a gross 726,000 jugars in four categories were distinguished. Payments by Hungary were to constitute the shares of Belgium, the British Empire, France, Italy, Note to VIII, 231—Continued Japan, and Portugal under Agreement I. Belgium, the British Empire, France, and Italy were to contribute annuities equal to their receipts from Bulgaria. Further, the British Empire, France, and Italy were to contribute 800,000 gold crowns in 1931 and 1932 and 3,600,000 gold crowns thereafter until 1944. Agreement IV, between France, the United Kingdom, Italy, Czechoslovakia, Rumania, and Yugoslavia, concerned the constitution of Fund "B", which was to liquidate claims with respect to Hungarian nationals arising out of nationality provisions (art. 63), state property (art. 191), and private property (art. 250) of the Hungarian treaty of peace. The capital of the fund was to be contributed up to December 31, 1943 by Great Britain, 600,000 gold crowns; France and Italy, 1,200,000 gold crowns each; for the 23 years 1944-66 Hungary was to pay into it out of its annuity debt 7,400,000 gold crowns annually. Surpluses in Fund "A" would cause transfers to Fund "B", increased capital in which would be distributed between Czechoslovakia, Rumania, and Yugoslavia. Both funds were to be administered by Managing Committees. They were established as juridical personalities at Basel under Swiss law by international conventions concluded at Bern August 21, 1931 and in force for 15 years from December 28, 1931 (United Kingdom, Treaty Series No. 8 (1932), Cmd. 4037). With Switzerland, the United Kingdom, France, Hungary, and Italy were parties to the conventions establishing Fund "A"; the United Kingdom, France, Italy, Czechoslovakia, Rumania, and Yugoslavia were parties to the convention on Fund "B". Czechoslovakia, Rumania, and Yugoslavia signed an agreement regarding the allocation of Fund "B" at Paris on April 25, 1930 and brought it into force by exchange of ratifications on February 8, 1932 (121 League of Nations Treaty Series, p. 149). The three states of the Little Entente agreed to divide the fund into three equal parts, transfers due to the initiative of each remaining its exclusive property. General transfers were to be divided equally and any share not taken by one was to go to the other two. Any undivided balance was to be paid to France, Great Britain, and Italy. Czechoslovakia. The agreement between Czechoslovakia and the same creditor states, signed at The Hague on January 20, 1930, entered into force on July 11, 1930 (113 League of Nations Treaty Series, p. 389). It was a complete and final settlement of the Czechoslovak debt arising out of the agreement of September 10, Note to VIII, 231—Continued 1919 (see p. 808) to the states having a credit in reparation under the treaties of peace. The final instalment of 37 annuities of 10,000,000 gold marks was payable January 1, 1966 (see table, p. 412). The trust agreement between the Bank for International Settlements and the creditors came into force on August 1, 1931. The Hoover moratorium suspended payments in accordance with the London protocol of August 11, 1931. ARTICLE 232. The Allied and Associated Governments recognize that the resources of Germany are not adequate, after taking into account permanent diminutions of such resources which will result from other provisions of the present Treaty, to make complete reparation for all such loss and damage. The Allied and Associated Governments, however, require, and Germany undertakes, that she will make compensation for all damage done to the civilian population of the Allied and Associated Powers and to their property during the period of the belligerency of each as an Allied or Associated Power against Germany by such aggression by land, by sea and from the air, and in general all damage as defined in Annex I hereto. In accordance with Germany's pledges, already given, as to complete restoration for Belgium, Germany undertakes, in addition to the compensation for damage elsewhere in this Part provided for, as a consequence of the violation of the Treaty of 1839, to make reimbursement of all sums which Belgium has borrowed from the Allied and Associated Governments up to November 11, 1918, together with interest at the rate of five per cent. (5%) per annum on such sums. This amount shall be determined by the Reparation Commission, and the German Government undertakes thereupon forthwith to make a special issue of bearer bonds to an equivalent amount payable in marks gold, on May 1, 1926, or, at the option of the German Government, on the 1st of May in any year up to 1926. Subject to the foregoing, the form of such bonds shall be determined by the Reparation Commission. Such bonds shall be handed over to the Reparation Commission, which has authority to take and acknowledge receipt thereof on behalf of Belgium. Note to VIII, 232 DETERMINATION OF DATES OF BELLIGERENCY, Note to VIII, 232—Continued The Belgian war debt incurred up to November 11, 1918 was fixed by the Reparation Commission as of May 1, 1921, at the equivalent of 5,612,385,422.54 gold marks. The reimbursement of this debt was allocated in execution of article 4 of the Finance Ministers' Agreement of January 14, 1925 as follows: France 45.891 percent; Great Britain 39.407 percent; Belgium, on account of its debt to the United States, 14.702 percent. The United States was a party to the 1925 agreement which laid the ground for the conclusion of its debt-funding agreement with Belgium on August 18, 1925, approved by an act of Congress April 30, 1926. In it the pre-armistice indebtedness of Belgium to the United States was funded at $171,780,000 payable in annual instalments without interest over a period of 62 years, the first payment falling due June 15, 1926. The annuities fluctuated between $1,000,000 and $2,900,000 per annum. The debt-funding agreement also provided for Belgium's direct payment of post-armistice indebtedness which was funded at $246,000,000 with interest at 3 to 32 percent over the 62-year period. The agreement was subject to the moratorium of June 10, 1932 and payments on both parts of it went into default from December 15, 1932. This debt was included in the agreement, relating to the "concurrent memorandum", signed at The Hague January 20, 1930 (see p. 399). At the closing of accounts, January 20, 1930, the Reparation Commission had credited Belgium with receipts of 2,228,247,533 gold marks. Belgium's priority, in addition to its 8 percent of receipts under article 237, was defined by article 5 of the agreement between Belgium, France, Great Britain, Italy, Japan, and Portugal for the settlement of certain questions as to the application of the treaties of peace and complementary agreements with Germany, Austria, Hungary, and Bulgaria, signed at Spa, July 16, 1920 (United Kingdom, Reparation, Agreement between the Allies for the Settlement of Certain Questions... 1922, Cmd. 1615); it was redefined by article 6 of the Finance Ministers' Agreement of January 14, 1925, which envisaged the cessation of the priority except for the war-debt service. As a result of these arrangements Belgium received up to June 30, 1923 nearly a third of the sums distributed, 1,730,126,000 gold marks out of 5,494,782,000 gold marks. During the German occupation of Belgium, the German authorities issued marks for circulation as currency in Belgium and after the resumption of Belgian control and the withdrawal of the marks by the Belgian Government, their value remained a charge on that |